VistaPrint Ltd. (VPRT) filed Quarterly Report for the period ended 2009-09-30.
Vistaprint N.V. is an online provider of coordinated portfolios of marketing products and services to small businesses globally. The company provides small businesses and consumers per year with the easiest way to make an impression at the best price. With a unique business model supported by proprietary technologies high-volume production facilities and direct marketing expertise Vistaprint offers a wide variety of products for both small businesses and the home. The Company offers a range of products and services ranging from printed business cards brochures and post cards to apparel invitations and announcements holiday cards calendars creative design services copywriting services direct mail services promotional gifts signage Website design and hosting services and e-mail marketing services. The Company has automated and integrated the design and production process from design conceptualization to product shipment and service delivery. Vistaprint Ltd. has a market cap of $2.15 billion; its shares were traded at around $50.09 with a P/E ratio of 39.8 and P/S ratio of 4.2.
Highlight of Business Operations:
Operating Activities. Cash provided by operating activities in the three months ended September 30, 2009 was $32.4 million and consisted of net income of $13.0 million, positive adjustments for non-cash items of $15.1 million and $4.4 million provided by working capital and other activities. Adjustments for non-cash items included $10.3 million of depreciation and amortization expense on property and equipment and software and website development costs, $5.3 million of share-based compensation expense, and $0.1 million of long-lived assets disposals or impairment, offset in part by $0.7 million of tax benefits derived from share-based compensation awards. The change in working capital and other activities primarily consisted of an increase of $11.6 million in accrued expenses and other liabilities and an increase of $5.2 million in accounts payable, offset by an increase of $8.6 million in prepaid expenses and other assets, an increase in accounts receivable of $2.8 million and an increase in inventory of $0.9 million.
Cash provided by operating activities in the three months ended September 30, 2008 was $28.6 million and consisted of net income of $8.3 million, positive adjustments for non-cash items of $13.5 million and $6.8 million provided by working capital and other activities. Adjustments for non-cash items included $8.1 million of depreciation and amortization expense on property and equipment and software and website development costs and $5.5 million of share-based compensation expense. The change in working capital and other activities primarily consisted of an increase of $4.9 million in accrued expenses and other liabilities and an increase of $4.3 million in accounts payable, offset by an increase of $0.8 million in prepaid expenses and other assets, an increase in accounts receivable of $1.3 million and an increase in inventory of $0.4 million.
Investing Activities. Cash used in investing activities in the three months ended September 30, 2009 of $21.6 million consisted primarily of capital expenditures of $20.1 million and capitalized software and website development costs of $1.7 million, partially offset by $0.1 million of investment maturities. Capital expenditures of $8.4 million were related to the purchase of manufacturing and automation equipment for our production facilities, $7.2 million were related to the purchase of land and facilities and $4.5 million were related to purchases of other assets including information technology infrastructure and office equipment.
Cash used in investing activities in the three months ended September 30, 2008 of $5.2 million consisted primarily of capital expenditures of $14.2 million and capitalized software and website development costs of $1.6 million partially offset by net sales of marketable securities of $10.7 million. Capital expenditures of $7.3 million were related to the purchase of land and facilities, $4.6 million were related to the purchase of manufacturing and automation equipment for our production facilities and $2.3 million were related to purchases of other assets including information technology infrastructure and office equipment.
Financing Activities. Cash used in financing activities in the three months ended September 30, 2009 of $3.9 million was primarily attributable to net payments in connection with our loan facilities of $6.7 million including payment of the remaining principal balance of the euro revolving credit agreement in the Company’s Dutch subsidiary in the amount of $5.9 million and the use of $1.2 million to pay minimum withholding taxes related to the vesting of RSUs granted and ordinary shares withheld under our equity incentive plans, partially offset by the issuance of ordinary shares pursuant to share option exercises of $3.4 million and tax benefits derived from share-based compensation awards of $0.7 million.
Purchase Commitments. At September 30, 2009, we had unrecorded commitments under contracts to expand our Canadian production facility, purchase land for our Australian production facility, and other facility related commitments of approximately $21,599, $5,537, and $2,021, respectively, and to purchase production equipment for our Australian, Canadian and Dutch production facilities of approximately $7,028, $2,313 and $2,386, respectively.
VPRT is in the portfolios of Steve Mandel of Lone Pine Capital.
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